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Aramco and ExxonMobil partner for Samref chemical expansion

16 May 2025

Saudi Aramco has signed a memorandum of understanding (MoU) with US oil and gas producer ExxonMobil to evaluate a significant upgrade of the Saudi Aramco Mobil Refinery Company (Samref) complex in Saudi Arabia and expand the oil refining facility into a world-class integrated petrochemicals complex.

Samref is the downstream joint venture of Aramco and ExxonMobil. It owns a crude refining facility located in Yanbu on the kingdom’s west coast that entered operations in November 1984.

The Yanbu refinery has a capacity of 400,000 barrels a day (b/d) and mainly produces propane and several grades of automotive diesel oil, two grades of marine heavy fuel oil and sulphur.

The MoU between Aramco and ExxonMobil to upgrade the Yanbu refinery and convert the facility into an integrated refining and petrochemicals complex was signed at the Saudi-US Investment Forum held in Riyadh between 13 and 14 May, during US President Donald Trump’s state visit to Saudi Arabia.

MEED understands that the Samref petrochemicals expansion project is one of the main projects that comprise Aramco’s mammoth $100bn liquids-to-chemicals programme.

The central ambition of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million b/d of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

Aramco and its subsidiary, Saudi Basic Industries Corporation (Sabic), had been tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which included greenfield developments and expansions of existing facilities, were to be built both in Saudi Arabia and in overseas markets.

ALSO READ: Aramco’s recalibrated chemicals goals reflect realism

Aramco has divided its liquids-to-chemicals programme in Saudi Arabia into four main projects, MEED previously reported:

  • Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery.
  • Conversion of the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker.
  • Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker.
  • Building a crude oil-to-chemicals (COTC) complex in Ras al-Khair, Eastern Province. Sabic is a partner in the Ras Al-Khair COTC project.

Aramco signed a venture framework agreement with China Petroleum & Chemical Corporation (Sinopec) and Yanbu Aramco Sinopec Refining Company (Yasref) in April for a potential petrochemicals expansion of the Yasref refinery complex.

Prior to that, in March, MEED reported that Aramco was making progress with another major project related to converting the Saudi Aramco Jubail Refinery Company (Sasref) refining complex in Jubail Industrial City into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker.

With Aramco advancing three of the four projects earmarked under its liquids-to-chemicals blueprint, the Ras Al-Khair COTC complex remains the only project on which progress has been laggard.

In a presentation detailing Aramco’s financial performance and operational activities in 2024, president and CEO Amin Nasser stated that the company had achieved 45% of the target of the liquids-to-chemicals programme as of the end of last year. Also, 53% of Aramco’s crude oil production is utilised by the downstream sector.

This has been achieved through “greater capital efficiency with low-equity and a high-placement strategy”, Nasser said in the presentation on 4 March.

Moreover, large-scale petrochemicals projects undertaken by Aramco’s joint ventures with foreign partners in China, South Korea and Saudi Arabia, namely the Shaheen and Amiral developments, respectively, will significantly contribute to the liquids-to-chemicals target when they come online in 2026 and 2027.

ALSO READ: Aramco records $26bn first-quarter profit despite low oil prices
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Indrajit Sen

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